Question

You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized over 4 years (48 months), and the nominal interest rate would be 9%, with interest paid monthly. What is the monthly loan payment? Do not round intermediate calculations. Round your answer to the nearest cent

Answer 1

the monthly paiment will be: $ 248.85

Step-by-step explanation:

Total principal paid will be :$ 10,000

Total interest paid: $ 1,944.82

Month 1 :

Payment;248.85 Principal: 173.85 Interest: 75.00 Balance: 9,826.15

Month 2:

Payment:$248.85 Principal $175.15 Interest $73.70 Total interest $148.70 Balance $9,651.0

And so on...

Mont 48:

JPayment: $248.85 Principal$247.00 Interest: $1.85 Total interest:$1,944.82 Balance:$0.00